Broadcom has reportedly secured a large HBM order from SK Hynix, and these chips are likely to be used in at least one major CSP’s AI hardware. It’s part of a trend
Hyperscalers such as Google, Meta and TikTok owner ByteDance are increasingly looking to diversify their AI hardware supply chains and reduce dependence on Nvidia, which has long dominated the space.
Broadcom is playing an increasing role in this change, with CEO Hock Tan telling investors on a recent earnings call that the company has three hyperscale customers, each on track to deliver 1 million units by 2027. The company plans to deploy XPU clusters and said it has been approached by two companies. Additional hyperscalers are also making advanced developments in their own AI XPUs.
Although Broadcom has not disclosed names, it is widely believed to be working with Google, Meta, ByteDance, and OpenAI on custom AI chips. The company is also thought to be collaborating with Apple to develop the iPhone maker’s first artificial intelligence server chip, codenamed “Baltra,” which will provide advanced networking technology essential for AI processing.
Bad news for Nvidia
According to TheElec, Broadcom is currently approaching South Korean memory giant SK Hynix to supply HBM, which it plans to use in custom AI chips for “big” (but predictably named) technology companies. thing.
According to sources at TheElec, Broadcom is actively seeking SK Hynix to supply its validated HBM solution and has secured large orders for the high-demand memory, with shipments expected to begin in the second half of 2025.
Samsung’s biggest memory rival, SK Hynix, which is a major HBM supplier to Nvidia, probably won’t be thrilled by this latest news.
SK Hynix is reportedly adjusting its production capacity to meet increased demand from Broadcom. According to TheElec, the company plans to increase production of 1b DRAM wafers (used as HBM’s core die) from 140,000 to 150,000 units to 160,000 to 170,000 units in 2025. However, this expansion has drawbacks and may be delayed. SK Hynix will deploy next-generation 1c DRAM to prioritize immediate production needs.
